Apna’s FY22 Loss Jumps 4X To INR 112.5 Cr On 400% Rise In Advertising Expenses

Sequoia Capital-backed Apna, which once held the tag of being the fastest startup to turn unicorn, saw its net loss grow almost 4X year-on-year (YoY) to INR 112.5 Cr in the financial year ending March 31, 2022 as its advertising expenses rose sharply. The startup had reported a loss of INR 28.2 Cr in the financial year 2020-21 (FY21). 

The job marketplace’s total revenue grew 283% to INR 65.7 Cr in FY22 from INR 17 Cr in FY21, while expenses rose 3.9X to INR 178.3 Cr from INR 45.4 Cr in FY21. 

Apna, a professional networking platform for blue- and grey-collar workers, saw its revenue from operations rise 277% to INR 63.8 Cr from INR 16.9 Cr in FY21. 

As per its filings, the startup mostly generates its revenue through the recruitment solutions it provides on its website and mobile application. The revenue from recruitment solutions is earned in the form of fees and is recognised on completion of the related service or on the expiry of the subscription period, whichever is earlier. 

The startup turned unicorn in FY22 after raising $100 Mn at a valuation of $1.1 Bn. The $1.1 Bn valuation is about 125 times of its total revenue of FY22.

Apna had nil revenue till September last year, when it entered the unicorn club. However, it seems to have started charging for its services in the subsequent months. 

In an interview after the fundraise last year, founder Nirmit Parikh said that the startup was then testing various models for generating revenue on a small number of users. “We are going to start exposing more and more of our user base to this. Today, we’re at 0.1% or 0.4%, and we want to slowly increase it. There is a long-term lens of monetisation,” he said. 

The startup has two avenues for generating revenue – the job marketplace where it charges fees from for both recruiters and job seekers, and the upskilling platform it runs for workers to learn new skills. 

In FY22, the startup also earned INR 1.8 Cr from other income, which usually comprises interest earned from investments. 

Advertising Expenses Surge

The startup’s total expenses rose 293% YoY in FY22 led by a surge in its advertising expenses. Apna spent INR 86.6 Cr on advertising and promotional activities in FY22, a jump of 413% compared to INR 16.8 Cr it spent in FY21. The advertising expenses contributed over 48% to its total expenses.

Meanwhile, employee benefit expenses rose 3X to INR 77.8 Cr from INR 25.9 Cr in FY21. Employee benefits expenses mostly comprise employee salaries, PF contributions, gratuity, and other employee welfare benefits. 

On a unit economic basis, the startup spent INR 1 to earn INR 0.35 through its operations. Its EBITDA loss worsened to INR 109 Cr from INR 27.7 Cr in FY21. 

Founded by Parikh in 2019, Apna is backed by the likes of Tiger Global, Owl Ventures, and GSV Ventures. It has raised funding of around $200 Mn till date across multiple rounds. 

The startup claims to have over 16 Mn users and presence across 40 cities, with over 150K employers on the platform. Zomato, BYJU’S, Delhivery, and Burger King are among the companies that have hired through the platform. 

Apna competes against the likes of Naukri.com, Indeed, Linkedin, and Monster Jobs.